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We are evaluating a project that costs $2,280,000, has a 8-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $2,280,000, has a 8-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 98,300 units per year. Price per unit is $39.15, variable cost per unit is $24.20, and fixed costs are $875,000 per year. The tax rate is 25 percent and we require a return of 11 percent on this project. Suppose the projections given for price, quantity,

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